It is not India's decade but India's century as the country is the future talent factory for the world, said Bob Sternfels, CEO, McKinsey & Co, in an interview with the Economic Times.
"Many people have said that it's India's decade. I actually think it's India's century when we look at some of the raw ingredients here. India is the future talent factory for the world," said Sternfels.
"By 2047, India would have 20% of the world's working population. And with supply chains being reimagined, it has massive potential for India across all aspects of manufacturing. The third is digitisation. India has leapfrogged on the digital scale. All those are the raw materials to do something special for not only the Indian economy but potentially for the world."
Talking about the recession, Sternfels said the signals are mixed as zero structural unemployment in the US and in most parts of Western Europe and some inflationary signs have started tapering off.
"We have zero structural unemployment in the US and in most parts of Western Europe. So, you are running at a very low unemployment rate. I think you have started to see some of those inflationary signs start to taper off. Oil prices have started to fall below $100 a barrel. Also, in certain supply chains, you are seeing a massive influx in secondary sales in the US and Europe. So, I would say the signals are mixed," Sternfels said.
Sternfels said deglobalisation will be a big mistake and harmful to global growth.
"When you look at the costs, the World Trade Organization just came out with a report that said if the US and China decouple, in a very conservative calculation, 5% of global GDP gets wiped away. And it disproportionately impacts the bottom 40% of society. So there's a massive cost associated with this," he said.
Disclaimer: This article is based on an interview conducted by the Economic Times. The views and recommendations given in this article are those of the individual analyst. These do not represent the views of MintGenie.